(A) Determine How to Minimize the Cost of Meeting the Demand

question 47

Essay

(A) Determine how to minimize the cost of meeting the demand for the next three weeks.
(B) Revise the model in (A) so that the demands are of the form , where is the original demand in month t, k is a factor, and is an amount of change in month t. Formulate the model in such away that you can use the SolverTable add-in to analyze changes in the amounts produced and the total cost when k varies from 0 to 10 in 1-unit increments, for any fixed values of the 's. For example, try this when = 2, = 5, and = 3. Describe the behavior you observe in the table. Can you find any "reasonable" 's that induce positive production levels in week 3?

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Definitions:

42 Months

A time period equal to three and a half years.

Maturity Value

The amount payable to an investor at the end of an investment period.

7.5 Years

A timeframe equal to seven and a half years, often used in contexts like finance or project planning.

Compounded Monthly

The process of adding interest to the principal balance of a loan or deposit on a monthly basis, resulting in interest on interest.